A Comparative Study on Institutions and Policies for Restoration of Development Gains in Land Use Planning and Transport Planning

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Land development and infrastructure improvement provide benefits to different economic bodies such as developers, users and land owners. However, the burden sharing for development does not seem fair in such that land owners usually burden a very low portion under the current legal ligislation in Japan.This research first compares the legal institutions and policies regarding restoration of development gains in land use and transport infrastructure planning in the United Kingdom, West Germany, the United States and Japan. They are given historical backgrounds and a general classification.In the UK and West Germany, general legislations are established and applied to any project in a country, while in the us different legal logislations are introduced for each individual project by voting of inhabitants. Japan is chassified in the former category, but the legislation is loose, and therefore, the rate of return of development gains is very low. This may be because the Japanese land legal system basically allows freedom of development to land owners in urban planning.As for transport planning, in the US and Japan transport improvement burben is mostly paid on the basis of beneficiaries to pay principle. Therefore, there are a variety of systems for restoration of development gains, while in the UK and West Germany most of burden is paid by public. However, the rate of return of benefit from land owners is very low in Japan while the transport users are suffering from their heavy burden. The financing system for transport infrastructure improvement has to be examined from following points of view: a) burden principle ( whether based on beneficiaries to pay principle or ability to pay principle) b) balance between benefit and burden, c) ease of specification and collection of benefit and d) time lag between fund raising and expenditure demand. From these points of view, it seems quite necessary for Japan to examine to introduce value capture systems.